August 2006
Average employment levels in Metro Denver up 2.2% for 2006
Metro Denver is being recognized once again as a region that offers healthy job opportunities. For the 18th consecutive month, year-to-date employment growth in Metro Denver through the second quarter outpaced the nation, according to data compiled by the Metro Denver Economic Development Corporation (Metro Denver EDC) in its Monthly Economic Summary for August 2006.
U.S. employment is up only 1.5% through the first half of 2006, while total employment in Colorado is up 2.2%. These percentages are exemplified by Denver’s 10th place ranking for the number of entry-level jobs open to recent college graduates, according to CollegeGrad.com. Additionally, the Spring 2006 Job Vacancy Survey by the Colorado Department of Labor & Employment found that 39,700 positions were open for immediate hire in Metro Denver compared to just 23,300 open positions one year earlier. Indeed, average annual employment in Metro Denver is 28,800 positions higher through the first half of 2006 compared to the same period in 2005. Job growth, in addition to nightlife, culture, and ‘coolness’ led to Metro Denver’s first place ranking in Forbes magazine’s list of “The Best Cities for Singles” for the third year in a row.
“These sustained favorable rankings and promising employment growth numbers are supportive of Metro Denver’s economic stability,” stated Tom Clark, executive vice president of the Metro Denver Economic Development Corporation. “Our largest employment growth continues to be in the natural resources and construction sector, making our designation as the balanced energy capital of the West evident.”
Year-to-date gains through June in the Natural Resources & Construction sector reported the strongest percentage gain of 6.7% through June, followed by a 3.3% increase in Professional & Business Services employment and a 2.9% increase in Transportation, Warehousing & Utilities employment. Information sector employment is down 3.7% for the year.
The most recent monthly economic data for Metro Denver reveals that 13 of the 18 indicators moved in a positive direction for the month, up from just nine last month. Annualized activity remained relatively constant with 15 economic variables posting positive changes for the year, down from 16 indicators last month.
As in previous months, the most troublesome area remains the residential real estate market. Home sales have declined, housing inventory levels are up, and foreclosure activity is strong – all factors that seem contrary to the healthy growth in employment and wages in Metro Denver. As foreclosures are a lagging indicator, recent activity reflects job losses that occurred during the 2002-2004 period and the prevalent use of interest-only and adjustable rate mortgages beginning in 2004.
However, the number of foreclosures is likely to be helped by the recent passage of the Mortgage Brokers Registration Act that took effect July 1, 2006. The new law requires brokers to register with the state and involves an FBI background check and posting a $25,000 bond. Prior to the law’s passage, only Alaska and Colorado did not regulate mortgage brokers.
The Monthly Economic Summary provides a snapshot of metro area economic activity, as well as its relationship to national and regional economic trends.